Amazon, Indonesia, and Congo Basin Forest Destruction and GDP Relationship - From July 1995 to the 2020s

Amazon, Indonesia, and Congo Basin Forest Destruction and GDP Relationship - From July 1995 to the 2020s

1990s - The Contradiction of Forest Destruction and Economic Growth
In the 1990s, rapid deforestation occurred in the Amazon in Brazil, Indonesia, and the Congo Basin in Africa. These regions saw short-term economic growth through agricultural development and timber exports, but underlying this was the environmental cost not reflected in GDP.

In Brazil's Amazon region, agricultural development and timber exports accelerated from the 1970s, with approximately 10,000 square kilometers of forest lost annually. This led to the emission of about 400 million tons of CO₂ per year, accelerating global warming. At this point, environmental issues such as soil degradation and ecosystem collapse were becoming evident, but such impacts were not fully reflected in GDP. Deforestation in the Amazon risked long-term sustainability in exchange for short-term economic growth.

In Indonesia, the expansion of palm oil production led to rapid deforestation. The slash-and-burn method in wetlands released greenhouse gases like CO₂ and methane, causing air pollution that affected neighboring countries. Consequently, Indonesia became the third-largest greenhouse gas emitter globally, increasing environmental costs, although palm oil export-driven economic growth was reflected in GDP.

Similarly, the Congo Basin in Africa experienced illegal logging and agricultural development. The Congo Basin forests, known as the "carbon reservoir," played a role in absorbing an estimated 88 billion tons of carbon, but millions of tons of CO₂ were released annually as forest loss reduced carbon absorption capacity. This had a severe impact on local livelihoods and ecosystems, with the restoration expected to incur enormous costs. However, these burdens were not reflected in GDP.

2000s - Awareness of the Environment and the Introduction of New Economic Indicators
In the 2000s, some countries introduced "Green GDP" to consider the impact of environmental destruction. Costa Rica, in particular, promoted the introduction of Green GDP, which reflects environmental costs such as deforestation and water pollution in economic indicators, leading to increased forest area and visible effects of environmental protection. Eco-tourism flourished, growing to an annual tourism revenue scale of billions of dollars. By incorporating such long-term benefits into GDP, sustainable development was achieved, setting an example for other countries.

In Japan, companies like Hitachi and Seiko Epson also introduced technologies to reduce freon and protect the ozone layer, achieving annual reductions equivalent to over 10,000 tons of CO₂. However, these companies' environmental contributions were not directly reflected in GDP, and their efforts were seen as public goods enjoyed by society as a whole, with a persistent gap between the environment and the economy.

2020s - The Reality of Environmental Costs and Global Responses
Entering the 2020s, the importance of environmental costs due to deforestation has increased, with global movements to pursue sustainability accelerating. However, many countries continue to suffer environmental destruction due to prioritizing economic growth.

In Brazil's Amazon region, 13,400 square kilometers disappeared in 2021, releasing 500 million tons of CO₂ into the atmosphere. The estimated climate change mitigation cost is approximately 10 billion dollars annually, but it remains unaccounted for in GDP. The Brazilian government has taken steps to ease deforestation in favor of economic growth, despite growing international pressure.

In Indonesia, palm oil export revenue reached approximately 30 billion dollars in 2021, supporting economic growth, but the environmental costs of deforestation remain unaccounted for in GDP. The 2020 forest fires released approximately 700 million tons of CO₂, and methane emissions due to wetland loss further accelerate global warming.

The Congo Basin in Africa sees 500,000 hectares of forest lost annually, emitting 60 million tons of CO₂ per year. Illegal logging and mining continue to accelerate deforestation. Although NGOs and companies are taking initiatives, the long-term environmental costs due to loss of carbon absorption capacity are not accounted for in GDP.

Costa Rica continues to be evaluated as a successful example of environmental protection through Green GDP. In 2022, forest area reached 59%, and eco-tourism generated annual revenues of 5 billion dollars. Investments in environmental conservation support sustainable economic growth, with a plan to achieve carbon neutrality by 2050 underway.

In Japan, Hitachi has improved CO₂ reduction technologies, achieving an annual reduction of 20,000 tons of CO₂. Additionally, Toyota announced its entry into the electric vehicle (EV) market in 2021, aiming to phase out gasoline vehicle production by 2035, marking progress in decarbonization. However, the environmental conservation effects of companies' efforts are still not reflected in GDP, with challenges remaining for sustainable development.

Conclusion
Through this historical progress, the contradiction between deforestation and economic growth has become apparent. As forests continue to be cleared in pursuit of short-term GDP growth without materializing environmental costs, it is clear that significant impacts such as global ecosystem destruction and accelerated warming will manifest in the long term. To aim for sustainable economic development, a new economic indicator that incorporates environmental elements is needed, and evaluation of Green GDP and corporate environmental technology initiatives is required.